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Egypt
Prepared by Lex Mundi member frm,
Shalakany Law Offce
Guide to Doing Business
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SHALAKANY LAW OFFICE
LEGAL ADVISERS















GUIDE TO DOING BUSINESS IN EGYPT



March 2012



SHALAKANY LAW OFFICE
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I. Egypt at a Glance


Name: Arab Republic of Egypt
Population: 76.5 million (June 2006 estimate)
Currency: Egyptian Pound (LE)
Language: Arabic (official), English and French
widely understood by educated classes
Religion: Muslim 90%, Coptic Christian 9% and
other 1%.
Capital: Cairo
Geography: Egypt is located in the north-eastern
corner of Africa and south-western Asia.
It is bounded on the north by the
Mediterranean Sea, on the east by
Palestine and Israel, on the south by
Sudan, and on the west by Libya.
Legislative Power: Egypt has a bicameral legislature, made
up of the elected People's Assembly
(Maglis al Shaab) and the Advisory
Council (Maglis al Shoura). The Advisory
Council is a consultative organ, whereas
the People's Assembly functions as the
main representative law-making body
Member of International
Organizations:
Egypt is a member of ABEDA, ACCT,
AfDB, AFESD, AMF, AU, BSEC
(observer), CAEU, COMESA, EBRD,
FAO, G-15, G-24, G-77, IAEA, IBRD,
ICAO, ICC, ICCt (signatory), ICRM,
IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO,
IMF, IMO, IMSO, Interpol, IOC, IOM,
IPU, ISO, ITSO, ITU, LAS, MIGA,
MINURCAT, MINURSO, MONUC,
NAM, OAPEC, OAS (observer), OIC,
OIF, OSCE (partner), PCA, UN,
UNAMID, UNCTAD, UNESCO,
UNHCR, UNIDO, UNMIL, UNMIS,
UNOMIG, UNRWA, UNWTO, UPU,
WCO, WFTU, WHO, WIPO, WMO,
WTO (Source: CIA World Factbook, as
of December 18, 2008)

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II. Overview of Legal System

The Egyptian legal system was initially modeled on the French Civil Code
System (Code Napoleon), but later developed its own legal principles and
structures. The system has greatly influenced the legal systems of many other
Middle Eastern countries. Many civil codes of other Arab countries are
closely modeled on the Egyptian Civil Code. Egyptian jurists are also
influential in most Arab countries. The Egyptian legal system, similar to most
continental civil code systems, is based on a civil code that covers personal
rights, the law of contracts, obligations and elements of tort law.

In addition, there are specific codes dealing with other areas of law, such as
the Commercial Code, which complements the Civil Code in certain areas of
commercial law, and the Code of Civil Procedures. These Codes refer
basically to private law and public law, which includes administrative legal
matters relating to the functions and legal relations of state bodies, whether
between themselves or with private persons.

In the realm of public law, there is an extensive jurisprudence of Egyptian
administrative law. Egyptian administrative law is closely modeled on French
administrative law.

The Egyptian court systems are divided into civil and administrative courts.
The civil courts have jurisdiction in matters of private law, whereas the
administrative courts have jurisdiction in matters of public law. The hierarchy
of the administrative courts is referred to as the State Council (Conseil
dEtat).

Egypt also has a written constitution that sets out constitutional principles to
which all legislation should adhere. A constitutional court handles
constitutional challenges to legislation and conflicts between civil and
administrative courts judgments.

III. Foreign Investment

Investment in Egypt, whether for foreign investors or Egyptian investors, is
governed and regulated by Companies Law No. 159 for 1981 (Companies
Law), Investment Law No. 8 for 1997 (Investment Law), and Capital
Market Law No. 95 for 1992 (Capital Market Law).

In general, foreign investors can invest in Egypt without any restrictions after
obtaining security clearances from the national security agencies. However,
the following activities are not open to direct investment by foreign investors:

Importing for the purpose of trading in Egypt

Acting as a commercial agent
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In addition, certain regulatory approvals are required for foreign and local
investments in Egyptian banks and insurance companies exceeding 10% of
the issued shares. All foreign investment in the Sinai region is also subject to
regulatory approval. Foreign investment in certain aviation activities is also
restricted. In certain cases, foreign investors with significant commercial
activities in Egypt may need to establish a legal structure in Egypt under the
supervision of the Egyptian Authorities (See Section VI for further detail).

IV. Investment Guarantees and Incentives

Pursuant to the Investment Law, entities (whether partnerships or companies)
established in Egypt as of the date of the coming into force of the law that are
active in certain fields enjoy certain guarantees and benefits. The fields in
question include the following: land reclamation, animal production,
manufacturing and mining, hotels, motels, hotel apartments, tourist resorts,
tourist transportation, cold storage and transportation of agricultural and
industrial products, air transportation and services relating thereto directly,
maritime transportation, petroleum services supporting drilling, exploration,
and transportation and delivery of gas, housing projects for non-furnished and
non-office rental, infrastructure projects for potable water, sewage, electricity
and communications, hospitals, medical centers which provide 10% of their
capacity for free treatment, and computer software programs and systems.

If an entity has, in addition to the activities covered under the Investment
Law, other activities, the guarantees and incentives would only be applicable
to the activities covered under the law.

The guarantees and benefits provided under the Investment Law include
without limitation:

Immunity from nationalization or expropriation;
Immunity from administrative attachment or freezing of assets;
The right to acquire ownership of land and buildings required for
carrying on the activity in question or increasing its scope;
The right to directly import equipment, raw materials, and
transportation vehicles appropriate for the nature of its activity;
The right to export directly;
Exemption from certain provisions of the Companies Law (including
the distribution of 10% of profits to employees);
Exemption from stamp tax;
Exemption from notarization and registration fees on the companys
articles of incorporation, and loan and mortgages agreements related to
its business, for a period of five years starting from the date of its
registration at the Commercial Registry;
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Registration of title of land required for the companys activities is also
exempted from the same taxes and fees; and
A unified customs duty of 5% on import of all machinery, equipment,
and tools used to set up the company.

The General Authority for Investment and Free Zones (GAFI) has authority
over the application of this law, and issues decrees for the establishment of
entities benefiting from the Investment Law.

V. Exchange Controls

Egypt adopted, in 1976, a liberal foreign exchange policy, enacting Foreign
Exchange Law Number 97 of 1976. This has been replaced by Law Number
38 of 1994 which was consequently replaced with the Banking Law Number
88 of 2003. The Law gives any natural or juristic person the right to retain
and transact with foreign currency generated from operations in Egypt. Such
transactions must be done through banks registered with the Central Bank of
Egypt (the CBE) or franchised dealers. However, the Egyptian pound,
although effectively floated, is still not transferable or convertible outside
Egypt.

VI. Direct Investment: Business Vehicles

Direct investment in Egypt (except for Free Zone investment) is subject to the
general corporate and commercial system in Egypt; and in certain cases, the
entity in question may benefit from additional investment guarantees and
incentives pursuant to the Investment Law if it invests in certain fields. The
most common legal vehicles used by foreign investors in Egypt are:

Limited liability companies
Joint stock companies
Foreign branch office
Representative Office

The following is a brief summary of each category and the limitations and
rules that apply to each type of arrangement.

Limited Liability Company

An Egyptian limited liability company is a closed company where the liability
of each of its shareholders is limited to the value of their shares in the
company.

1) Registration

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Limited liability companies have to be registered in the Commercial
Registry and are subject to the supervision and inspection of GAFI.
Any amendments to the articles of incorporation and by-laws must be
reported to and approved by GAFI.


2) Scope of Activities

Limited liability companies are precluded from activities in the areas
of insurance, banking, savings, and investment management. Apart
from the preceding areas of activity, limited liability companies can
carry out legal commercial activity similar to other business entities,
subject only to the general limitations of applicable laws and
regulations.

3) Management and Control

There is no express provision indicating a maximum ceiling for
ownership of capital by foreigners. Hence, a limited liability company
may be 100% foreign owned. However, it should be noted that, under
Egyptian law, a limited liability company cannot be wholly owned by
one entity. Consequently, there must be at least two shareholders.
With respect to management, it is carried out by managers appointed
by the shareholders. There may be one or more managers. In all cases,
there must be at least one Egyptian manager. Major decisions are
taken through the shareholders meeting, wherein either a simple
majority or a super majority may be required.

Managers and persons who are considered representatives of the
company can be held personally liable for breach of their fiduciary
duties and for certain violations of the law by the company.

Parent companies cannot be held liable because of their separate and
independent legal personality. Furthermore, the corporate veil of
Egyptian companies cannot be pierced.

4) Capital

There is no minimum capital for a limited liability company. Shares
can be issued for non-cash consideration with the approval of a
shareholders' meeting. However, a formal valuation is required in
certain cases where the value of the capital exceeds LE 1,000,000.

5) Taxes

Limited liability companies are subject to tax on companies profits.

6) Profit-Sharing

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As long as the capital of the limited liability company does not reach
LE 250,000 (which is the minimum capital for a joint stock company),
there is no obligation for the distribution of part of the profits to
employees. If the capital reaches the aforementioned figure, 10% of
the net profits is to be distributed to employees, provided that such
10% does not exceed the annual total value of salaries and wages
payable to such employees. The entitlement of foreign employees to
such distribution is subject to legal debate.

Joint Stock Company

An Egyptian joint stock company may be a closed company or a listed
company, where the liability of its shareholders is limited to the value of their
shares in the company.

1) Registration

A joint stock company must be registered in the Commercial Registry
and is subject to the supervision and control of GAFI, like limited
liability companies. The Egyptian Financial Supervisory Authority
(EFSA) should be informed of the issuance of any stocks or bonds,
which should only be issued if EFSA has not objected within three
weeks of its notification. Public issues are supervised by EFSA.
Furthermore, the registration of companies working in certain fields
such as securities or factoring requires a license from EFSA. Any
amendments to the articles of incorporation and by-laws must be
reported to, and approved by GAFI (and the competent authority, in
the case of banks and insurance companies). Moreover, The company
must keep accounts and publish its semi-annual or annual audited
accounts and financial statements, duly audited by a qualified Egyptian
auditor.

2) Scope of Activities

A joint stock company can carry out all commercial activities subject
to the limitations imposed by applicable laws and regulations.

3) Management and Control

There must be at least three shareholders. The management of the
company is effected through a board of directors comprising at least
three members elected by the shareholders for a three-year term. The
first board of directors is elected by the incorporating shareholders and
has a term of five years. A corporate or other legal entity could be
elected as a member of the board, in which case a representative of the
legal entity is to be nominated to attend the board meetings.

Directors can be held personally liable for breach of their fiduciary
duties. In addition, persons who are considered legal representatives of
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the company, such as the chairman or the managing director, can be
held personally liable for certain violations of the law by the company.

Parent companies cannot be held liable because of their separate and
independent legal personality. Furthermore, the corporate veil of
Egyptian companies cannot be pierced.


4) Capital

Shares may be closely held or offered to the public. The minimum
issued capital required for a company not offering its shares to the
public is LE 250,000, of which 10% is to be paid at the time of
incorporation, to be increased to 25% within three months, and the
remaining amount of the nominal value of the shares is to be paid up
within five years. The minimum capital of a joint stock company
offering its shares for public subscription is LE 20,000,000, fully paid
up. However, in case of holding companies established for the
purposes of stock dealings and investment, the minimum capital is LE
5 million, of which at least 25% must be paid on incorporation. The
remaining amount of the issued capital is to be paid up within five
years of the date of incorporation according to the procedure and at the
rate set by the board of directors. The authorized capital is not to
exceed 10 times the issued capital. If the shares are to be offered to the
public, this must be done through a bank licensed to receive
subscriptions, a company established for this purpose, or a company
licensed by EFSA to deal in securities. Shares can be issued for non-
cash consideration with the approval of an extraordinary general
shareholders' meeting. However, a formal valuation is required in
certain cases where the value of the capital exceeds LE 1,000,000.

In general, there are no limitations to the percentage of the capital that
can be owned by foreigners. However, there are some exceptions to the
previous rule. For example (as mentioned earlier) certain regulatory
approvals are required for foreign and local investments in Egyptian
banks and insurance companies exceeding 10% of the issued shares. In
addition, companies established for executing investment projects in
the Sinai Peninsula must have at least 55% Egyptian capital.

5) Taxes

Joint stock companies are subject to tax on company profits.

6) Profit-Sharing

At least 10% of the net profits are to be distributed to employees,
provided that the amount to be distributed shall not exceed the total
value of the wages and salaries annually paid to the companys
employees. The entitlement of foreign employees to such a distribution
is subject to legal debate. However, the Labor Office has taken the
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position that foreign employees are not entitled to such a distribution.

Foreign Branch Office

Under the Companies Law, a foreign company may establish a branch office
in Egypt to undertake certain commercial activities. Practically, the branch is
treated as an Egyptian company in all matters except corporate governance.

1) Registration

Any foreign company, whatever its legal form, which carries out any
commercial, financial, industrial or contracting activity in Egypt has to
be registered as a branch in the Commercial Registry and GAFI.
2) Scope of activity

A branch can undertake any form of legal activity in Egypt for which it
is registered in the Commercial Registry provided that it has a signed
contract with an Egyptian entity to provide the services encompassed
by such activity.

3) Management and control

A branch can be managed by a foreign manager. A branch is under the
full control of its parent company. Branch offices activities are subject
to review by GAFI to ensure compliance with laws and regulations.

4) Capital

Branch offices are not subject to a requirement of a minimum capital
investment. However, initial capital investments must be made in
foreign currency transferred to Egypt through a registered Egyptian
bank.

5) Taxes

The net profit of a branch is subject to corporate tax at the same rate as
Egyptian companies.

6) Profit-Sharing

Branches are bound to distribute at least 10 % of their annual net
profits to their employees (not exceeding the total annual wages and
salaries paid to workers and employees of the branch).

Representative Office

Pursuant to the Companies Law and its Executive Regulations, a foreign
company may establish a representative office in Egypt for the purpose of
performing market study and research for the benefit of the foreign company.

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1) Registration

A representative office must be registered with GAFI. Bank
representative offices must be registered with the CBE. Furthermore, if
an office is designated as a technical representative office, it must be
registered with the Ministry responsible for its field of activity. For
example, a technical office relating to pharmaceuticals must be
registered with the Ministry of Health.

2) Scope of activity

Pursuant to Article 316 of the Regulations for Companies Law, the
sole authorized activity for a representative office is to conduct market
research, market surveys, and production studies. In the case of a
technical representative office, the scope also includes technical
review of products in the market.

3) Management and control

Management can be handled by a foreign manager for the
representative office. A representative office is under the full control of
the parent company. Activities of a representative office are subject to
review by GAFI to ensure compliance with laws and regulations.

4) Capital

There is no requirement for any capital investment. The parent
company pays for the expenses of maintaining the representative
office.
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5) Taxes

Since a representative office is legally not involved in any commercial
activities, it does not realize any profits and as such is not subject to
taxation. Employees are subject to applicable taxes on their
employment income.

6) Limitation of Scope

Given that the scope of activity for a representative office is very
limited, a representative office may be useful to monitor commercial
activities undertaken by some other form of business entity
undertaking the actual commercial activity on behalf of the foreign
entity in Egypt. For example, a foreign entity's representative office
may be used to monitor the activities of a foreign entitys distributor or
agent in Egypt. The office may, indirectly, assist the distributor
through the undertaking of market research and market surveys.


VII. Indirect Investment: Marketing
Arrangements

This section deals with arrangements whereby foreign producers or suppliers
market their products indirectly in Egypt. In other words, the producer does
not incorporate or establish a separate Egyptian entity, but carries out its
marketing activities through some form of representation in Egypt.

Agency

Agency agreements are governed by Agency Law No. 120 of 1982 and the
new Egyptian Commercial Law No. 17 of 1999.

Commercial agents must be registered at the Commercial Agents' Registry,
which issues a certificate confirming the registration. The agent must be
Egyptian or a 100% Egyptian owned company. The agency agreement must
be registered with the Egyptian Chamber of Commerce.

A commercial agent can obtain compensation if both:

The agency agreement is terminated (or not renewed) without good
cause and without notice (or at an unreasonable time), even if the
termination was provided for in the terms of the agency agreement. All
contractual provisions to the contrary are null and void; and
The agent has not committed an error or omission in the course of its
duties, and its activities are proven to have led to evident success in
promoting the sales of the commodity or increasing the number of
customers for the principal.

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A Decree from the Minister of Trade (Number 362 for the Year 2005) placed
pressure on foreign principals who have ongoing disputes with local
commercial agents to settle such disputes amicably. The Decree holds that no
new agent can be registered unless compensation due to the terminated
commercial agent is settled. If the terminated agent fails to notify the
competent authority with a copy of the writ of its court action or request for
arbitration within 60 days of initiating such action or arbitration, there is no
restriction on the registration of a new agent.

Importation

Under Egyptian law, the importation of goods or products from abroad
requires an importation license. An importation license grants the licensee the
right to carry out such importation activity. Similarly to commercial agents,
importation licenses are only granted to Egyptian individuals or partnerships
wherein all the partners are Egyptian, or companies wherein all the
shareholders are Egyptian. It is the usual practice that the commercial agent
itself holds the importation license. Thus, the commercial agent carries out the
marketing, as well as the importation activities.

The importation of foreign products from abroad by a person holding an
importation license takes place through letters of credit that are opened for the
full value of the imported products. In certain instances, the customer buying
the products would itself have the importation license and would import
directly from the foreign producer. Some parties, such as certain public sector
entities and governmental organizations, may be exempt from importation
restrictions, and may then be able to import directly from the foreign supplier.
In such cases, payment by transfers or other means may be possible.

Distribution

A distributor is a person who sells products in the country on its own account.
In other words, a distributor would buy the products directly from the foreign
supplier or from the foreign suppliers agent and re-sell at a profit. There are
no specific laws governing distribution and franchising agreements. These
are governed by the general provisions of the Egyptian Civil Code and the
Commercial Code. There is no need to register as a distributor, as long as the
distributor does not carry out marketing activities on behalf of the foreign
supplier. In other words, as long as the distributor is selling for its own
account, it does not need to be registered as an agent. Thus, a foreign producer
may appoint a distributor in Egypt that would buy the products directly from
the foreign producer (with an importation license), who would pay for the
products and re-sell the products for its own account, for its profit.

Alternatively, the foreign producer may appoint both an agent and a
distributor, which is common. The agent would carry out the marketing on
behalf of the foreign producer as well as the importation process, and the
distributor(s) would buy from the agent and re-sell for their own account.
There are no nationality restrictions for distributors. The foreign producer
may itself form part of the distributor entity that buys the product from the
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agent and resells within the country (by setting up a 100% owned subsidiary
or through a joint venture). The distributor entity, in which the foreign
producer may be involved, as mentioned earlier, may itself provide the after-
sales support and maintenance. Naturally, the distributor is subject to taxation
on its net profits.

Franchising

Franchising agreements are treated the same way as distributor agreements
(See above, Distribution.) In addition, if a franchise agreement involves a
transfer of technology, it must be governed by Egyptian Law and any disputes
in connection with that agreement must be resolved by the Egyptian courts or
by arbitration in Egypt under the Egyptian Arbitration Law No. 27 of 1994.

Technology Transfer and Licensing Agreements

The foreign producer or supplier may also enter into a technology transfer or
licensing agreement with an Egyptian enterprise. In such cases, an agent is
not required as there is no marketing of foreign products within the country.
Rather, the Egyptian enterprise that is producing under license from the
foreign enterprise would be marketing its own products. However, the
royalties payable to the foreign enterprise are subject to Egyptian taxation at
the rate of 20%, and are to be withheld at the source. However, some double-
taxation treaties to which Egypt is a party (e.g., with the United States) reduce
the rate to 15%. (See Section XII for further detail on intellectual property
rights in Egypt).

VIII. Free Zone Investment

The Investment Law sets the framework for the establishment and
management of general free zones in Egypt. These are created pursuant to
Cabinet decrees (a number of free zones were already established and in
operation prior to the law, including the Alexandria Free Zone and others).
GAFI sets the policies for free zones and establishes the conditions for
granting licenses for entities to operate in the free zones, and the regulations
for occupying land and buildings therein. Each free zone has a Board of
Directors that manages it, and licenses for operation are granted pursuant to
decrees of the Chairman of the Board. Companies working in the fields of
fertilizers, iron and steel and production, petrol production and liquefying and
transporting natural gas do not benefit cannot be granted a private free zone
status [Article 10 of Law 114/2008].

Free zone projects are not subject to taxes. However, an annual fee is payable.
The fee is 1% of the value (CIF port of arrival) of goods entering the free
zone for storage projects, and 1% of the added value (cost of manufacture or
assembly) of goods exiting the free zone for manufacturing and assembly
projects. Trade in transit products (with determined destination) is exempt
from this fee. Projects whose main activity does not involve the entry or exit
of goods are subject to an annual fee equal to 1% of total revenue realized by
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the project as set out in accounts certified by an auditing firm. The above fee
is in addition to an annual service fee at the rate of 0.5 per mille of the capital
costs of the project, with a minimum of US $100 and a maximum of US
$1,000. The minimum and maximum are likely to change often and should be
checked per annum. Oil refining projects are not subject to the 0.5 per mille
annual fee; they are obliged to pay an annual services fee of 0.005% of the
projects investment costs with a cap of USD 100,000. Also, such projects are
not exempt from taxes[Law No. 133/2010].

Free zone projects are generally exempt from import/export regulations, and
all equipment, machinery, and transportation required for the activities thereof
are exempt from customs duties and sales tax (with the exception of cars).
In addition to general free zones, GAFI may set up private free zones which,
if necessary, may be limited to one project. It may also grant approval for the
transformation of an in-land project to a private free zone (specific conditions
are set out in the Executive Regulations to the Investment Law, including the
requirements that the project is already active, and that it exports at least half
of its production output).

IX. Banking and Financial Facilities

Investment banking services and products in Egypt are regulated by various
governmental agencies. Banking and financial services activities require a
license from the CBE. Investment banking services require a license or the
approval from the Egyptian Financial Supervisory Authority (EFSA).

The following laws and the executive regulations thereof regulate investment
banking companies and activities:

Law No. 159 of 1981 on Commercial Companies
Law No. 88 of 2003 on Central Bank, Banking Sector and Money
Law No. 80 of 2002 on Anti Money Laundering
Law no. 95 of 1992 on Capital Markets
Law No. 93 of 2000 on Central Depository and Custody
The Egyptian Commercial Code, Law No. 17 of 1999
Law No. 91 of 2005 on Income Tax

As a general matter, cross border activities in Egypt should be conducted in a
way that would not be considered a public offering of such product or
service in Egypt (conducted on a one-on-one basis, without public advertising
and consistent with private placement principles). There are no restrictions on
engaging in investment banking activities for individuals or entities as long as
such is included in the purposes or activities of such entities.

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Interest rates are determined by the CBE. However, a bank and its client may
contractually agree on an interest rate that is higher than the declared rate of
interest. Furthermore, the determination of fees and commissions is based on
agreement between each bank and its clients.

All the shareholding structures of Egyptian investment banks and capital
market related companies are reported and approved as the case may be to
EFSA. In addition, all the shareholding structures of Egyptian banks are
reported and approved as the case may be to the CBE.

X. Labor Law and Employment

The Law Governing Employment Matters

Employment issues in Egypt are governed by the Egyptian Labor Law No. 12
for the year 2003 (Labor Law), which governs all employees working in
Egypt regardless of their nationality. In addition to the Labor Law, several
ministerial decrees also govern the employment relationship and are
considered complementary to the Labor Law. The Labor Law and all relevant
ministerial decrees aim at increasing private sector involvement and achieving
a balance between employee and employer rights.

General Considerations

Minimum Wage

According to Article (34) of the Labor Law, the National Counsel for Wages
undertakes to set minimum wage levels taking into consideration the cost of
living and striking a balance between wages and prices. The Counsel also sets
the minimum annual increase which must not be less than 7% of the basic
salary which is used to calculate the social insurance.

Working Hours

The working hours according to the Labor Law are a maximum of 8 hours per
day or 48 hours per week in the case of a six-day work week. However, the
employee may, from time to time, be required to work additional hours when
necessary.

Annual Leave

According to Article (47) of the Labor Law, the duration of the employees
annual leave is 21 days per year for those who have worked one year in the
service of an employer. For those who have worked more than 10 years in the
service of one or more employers, the annual leave is 30 days. Also,
employees that are over 50 years of age are entitled to annual leave of 30
days. As for employees that have worked less than one year in the service of
an employer, their annual leaves shall be pro-rata to their period of service,
provided that they have spent 6 months in the service of the employer.
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Sick Leave

According to Article 54 of the Labor Law, if an employee is sick, he or she is
entitled to sick leave as determined by the concerned medical authority.
During sick leave, the employee shall be entitled to his or her salary as
stipulated in the Social Insurance Law. An employee who has been proven to
be sick shall be entitled to a paid sick leave at the rate of 75% of his or her
wage upon which social insurance payments are calculated, for a period of 90
days, to be increased to 85% thereafter for the following 90 days. Sick leaves
will be payable to the employee for up to 180 days. The employee has the
right to benefit from his/her accumulated annual leaves and also to convert
his/her annual leaves into sick leaves if he/she has a balance of such leave.

Minimum Number of Nationals

According to the Companies Law, only 10% of the employees in a company
can be foreigners, and their salaries shall not exceed 20% of the total salaries.
Furthermore, according to the Investment Law, only 25% of the employees in
a company established in any of the free zones can be foreigners.

Hiring and Dismissal of Employees

Hiring

Pursuant to the Labor Law, the employer has the right to collect personally
identifiable information that may be used in connection with the application
for employment, compensation, benefits, and other services offered by the
employer. The employer should have a file for each employee including
certain information which is required for appointment (i.e. the employees
qualifications, certificates, his/her social status, and a copy of his/her ID or
passport, a certificate from the employees former employer). The employer
should maintain in such file information regarding the employees work
history, work performance, and disciplinary history during his/her
employment with the employer.

Employment contracts, whether for foreigners or Egyptians, are required to be
in writing and in Arabic.

Dismissal

If the employer wishes to terminate a definite period employment contract at
any time during its term, without a justified cause, (i.e., if the employee has
not committed a grave fault as illustrated below), the employer will be liable
for the full wage the employee would have been entitled to throughout the
entire period of the contract. In this case, the applicable notice period will be
as agreed upon in the definite period employment contract.

If an indefinite period employment contract is terminated by the employer
without a justified cause, the employer will be liable to compensate the
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employee for the harm caused because of the termination as follows: no less
than two months full salary for each year of service, in addition to other
entitlements (e.g., accrued leaves, bonus, etc.). In this case, a two months
notice period should be sent to the employee if the employees service with
the employer has been less than ten years, and a three months notice period
should be sent to the employee in case the employees service with the
employer has been more than ten years.

According to the Labor Law, the employer, in general, is not entitled to
terminate the employment contract unless the employee breaches the contract
by committing a grave fault, as explicitly stated in Article (69) of the Labor
Law. Grave Fault circumstances include the following:

Assuming a false identity or submitting forged documents;
Continually violating safety instructions;
Absence from work for more than 20 non-consecutive or ten
consecutive days in any one year;
Divulging the employer's secrets, causing a material loss;
Competing with the employer in the same line of work;
Being intoxicated during working hours; and
Assaulting the employer, the general manager or any of his superiors

In addition, the employer can terminate the employment contract for
professional incompetence.

If the employee is unfairly dismissed, he/she can claim compensation.
Compensation for unfair dismissal is decided by the competent court, but
must not be less than two months' full wages for each year of service, or in the
case of a definite term agreement, the salary for the remainder of the contract
period.

Any employer can declare redundancies for economic or other reasons,
including reduction or cessation of activities, after obtaining the approval of a
committee affiliated with the Ministry of Labor and Emigration.

Safety Standards

In general, the Labor Law stipulates that the provisions regulating emissions,
sound pollution and matters of that nature that are outlined in the
Environmental Law have to be respected by the employer. In particular,
Article (208) to (211) of the Labor Law stipulates that the employer should
provide all the necessary means to protect its employees from hazardous,
chemicals, machinery, infections, noise and sound pollution at the work place.
Furthermore, Articles (212) and (214) of the Labor Law provide that the
employer has the obligation to equip the workplace with the necessary first
aid and fire presentation measures.

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Workers Unions

Any establishment that hires more than fifty employees should have an
Employees Union to represent the establishments employees. However,
regarding establishments that hire less than fifty employees, the negotiations
will be carried by representatives of the General Union and the Employers
representatives.

The main objectives of unions are as follows:

Settlement of individual and group disputes related to its members;
Participation with the General Union in drafting collective employment
contracts;
Participation in the discussions related to the establishments production
plan and assisting in the execution thereof;
Consultation on penalties regulations and other internal regulations
related to the establishment's employees at the time of drafting and
amendment;
Execution of the service programs approved by the General Union; and
Contribution to the social activity in which the employees participate.

XI. Work Permit Requirements

Foreign employees may not work in Egypt unless they obtain a residency
permit, which includes a work permit (called a non-tourist resident permit).
The required documents for obtaining a resident permit in Egypt include:

Copies of the letters of the Head of the Head of the Central Authority
for Employment and Labor Market Information which are addressed to
the Passports, Emigration and Nationality Administration and the
competent administrative authorities for the approval of recruitment of
the employee and granting him/her a work visa;
A copy of the foreign employees passport;
A copy of the employers Social Insurance Form 2 (most recent
version);
A letter issued by the employer stating the total salaries and the number
of Egyptian and foreign employees (in Arabic);
Experience Certificate for the foreign employee comprising his/her
experience in the field where he/she will be working, to be notarized by
the competent authorities and the Egyptian Embassy in that country. An
official Arabic translation is required;
Foreign employees work permit forms numbers 1 (stamped by the
companys stamp) and 2;
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A postal order in the favor of the head of the competent governmental
authority of an approximate value of LE 1,500 (some foreign employees
are exempt from such fees);
Extract of the commercial registration form and the tax card of the
Egyptian company;
HIV test to be taken in Egypt (some foreign employees are exempt from
taking the test); and
An acknowledgement (in Arabic) from the foreign employee stating that
he/she neither previously worked in Egypt nor obtained a work permit
8 passport-size photographs of the foreign employee.

It should be noted that foreign technical experts must have two Egyptian
employees as assistants. Also, employees working in certain fields (such as
tourism and education) need to submit additional documents and procure
specific approvals in order to obtain a work permit.

Once all required documents are submitted, the Labor Office will issue a
temporary slip to be attached to the employees passport, which will allow the
employee to start work. After security clearance procedures, which take
approximately 2 months, the work permit and the residence visa are issued.
The process of obtaining work permits costs approximately LE 3,000.

It should be noted that a work permit is always temporary. No permanent
work permit is granted. The employee must renew it every year or every six
months, depending on the term of the work permit.

XII. Taxation

Tax Law Number 91 for the year 2005 drastically simplified the Egyptian
taxation system. Generally speaking, there are now two types of taxes
applicable in Egypt:

An income tax applicable to individuals; and
A tax on company profits applicable to all types of juristic persons
(companies and partnerships).

These two types of taxes are briefly outlined below:

Income Tax on Individuals

The tax on income is in general applicable to the income of natural persons
resident in Egypt for the majority of a year in a residence whether owned or
rented or if he/she has a commercial office, a place of business, a factory or
other places where a natural person undertakes work in Egypt or resides in
Egypt for more than 183 continuous or interrupted days within 12 months.
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Also, an Egyptian who performs his duties outside Egypt and the source of his
income is the Egyptian Treasury is liable to pay an income tax.

The tax covers four sources of income:

income from commercial and industrial activity;
Salaries and wages;
income from non-commercial professions; and
income realized from real estate property.

Income from Commercial and Industrial Activity

Tax from commercial and industrial activity includes the net profit realized
from any commercial or industrial activity, even if such activity is limited to
one transaction. It also includes profits realized by brokers and agents and, in
general, all profits realized by any person, agency, or office that acts as a
broker, mediator, or agent for the sale, purchase, or lease of real estate
property or any kinds of goods, services, or stocks. It also includes profits
realized from real estate development, and rental of commercial and famished
property.

Salaries and Wages

The salaries and wages tax covers salaries, wages, bonuses, and annuities,
excluding pensions and social insurance payments paid to individuals residing
in Egypt or individuals residing abroad on account of services rendered in
Egypt.

Income from Non-Commercial Professions

Tax on income from non-commercial professions includes net profits realized
from the professions where the income is basically generated by the
taxpayers non-commercial work. This also includes profits realized from
professional work abroad if the main or permanent center for the taxpayers
professional practice is in Egypt. This category in effect also includes revenue
derived from any profession or activity not expressly covered by the law, i.e.
this is the default tax category.

Income Realized from Real Estate Property

Tax on revenue from real estate wealth includes revenue from exploitation of
agricultural land and buildings.

Deductions

The categories outlined above include a number of deductions, exemptions,
and the like, and these should be reviewed individually. Income tax is payable
on the excess of LE 5,000 of the total net income realized by the resident
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taxpayer during the year.

The tax rates on the net annual income of natural persons are as follows:

More than LE 5,000 up to LE 20,000: 10%.
More than LE 20,000 up to LE 40,000: 15%.
More than LE 40,000 up to LE 10,000,000: 20%.
More than LE 10,000,000: 25%

Tax on Company Profits

Tax on company profits is applicable to the profit realized by all juristic
persons operating in Egypt. This tax is also applicable to banks and public
sector companies and units, as well as foreign banks and companies operating
in Egypt, whether directly or through branches registered in the country. The
general tax rate is:

Up to LE 10,000,000: 20% of the net profits.
More than LE 10,000,000: 25%.

There are two exceptions to the general tax on profits:

The profits realized by oil exploration and production companies are
subject to a higher tax rate of 40.55%; and
The profits realized by the Suez Canal Authority, the Egyptian
Petroleum Authority, and the Central Bank of Egypt are subject to a
higher tax rate of 40% of their profits.

Generally, the profits of a foreign subsidiary need not be imputed to a tax
resident parent company, because there are no controlled foreign company
rules.

General Tax on Sales

In accordance with Law Number 11 of 1991, a new general tax on sales is
applicable. The tax applies to the sale of goods (some goods are exempted)
and certain types of services (mainly tourist, telecommunications, and
entertainment services). Goods imported from abroad for commercial
purposes are also subject to the tax. The tax rate for goods ranges from 10%
(the general rate) up to 50% for certain specified goods. The tax rate for
services ranges from 5 to 10%. The tax is added to the price of the goods or
services in question, i.e. is payable by the consumer at point of sale and
remitted by the billing entity to the tax authorities.

Egypt does not have transfer pricing rules. However, if the price is
substantially below the market price and/or the price used in other
transactions, it may give the impression of tax evasion.
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XIII. Product Liability

The manufacturer and/or seller can be liable on the grounds of:

Tort, for damage caused as a result of a defective product;
Breach of contract; or
Product liability.

Tortious liability

The manufacturer of a defective product is liable in tort if a defective product
causes any personal damage, injury or death. The statute of limitation is 3
years from the date the claimant becomes aware of the damage and, in any
event, claims are barred after 15 years from the date the tortious act occurred.

Contractual liability (warranty against hidden defects)

A seller warrants that the product sold conforms to the specifications
acknowledged by the seller and is responsible for, and warrants the purchaser
against, any hidden or latent defects for one year from the date of delivery to
the purchaser (Civil Code).

The purchaser must prove:

That the product was defective;
That the defect could not have been discovered by the purchaser at the
time of delivery and that, if the purchaser had known of such defect, he
would not have purchased the product; and
The actual damage suffered and profits lost as a direct result of the
defect.

Commercial Code

The Commercial Code recognizes the notion of product liability of both
manufacturer and seller. Any person suffering from direct material or physical
damage resulting from a defective product, has the right to claim damages by
filing a product liability claim against the manufacturer, distributor or both
severally. The statute of limitations is the same as for tortious liability.

Consumer Protection Law

The Consumer Protection Law No. 67 of 2006 (the CPL) and its Executive
Regulations set out obligations for suppliers of products and services (as
defined under the CPL) and various guarantees for consumers. In the event of
a breach, the Consumer Protection Authority can suspend the suppliers'
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activities or seize defective products until investigations are concluded or
court judgments are passed.


XIV. Competition

The Competition Law No. 3 of 2005 and its Executive Regulations establishes
the Egyptian Competition Authority to monitor compliance. The Competition
Law prohibits, among other things:

Agreements or contracts between competing persons that are likely to:
o increase, decrease or fix prices;
o divide product markets or allocate them on certain grounds (for
example, geographical areas);
o result in concerted participation in tenders, auctions, negotiations and
other calls for procurement;
o restrain production, distribution or marketing operations, or limit the
service distribution; and
o restrict competition.
A person holding a dominant position from abusing that position; and
Acts committed outside Egypt that may prohibit, restrict or impair free
competition in the Egyptian market.

Unilateral (or single-firm) conduct

Single firm conduct is likely to come under the abuse of a dominant position
under the Competition Law. An entity holding at least 25% of the market
share enabling it to affect the prices or what is on offer in the market is
considered as having a dominant position if its competitors have unequal
power in the market and are therefore unable to prevent this dominance
(Article 4 of the Competition Law).

A person holding a dominant position in a market is prohibited from
undertaking specific practices that are considered detrimental to competition
(Article 8 of the Competition Law). Such practices include:

Preventing the manufacture, production or distribution of a product for a
certain period (or periods) of time;
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Refraining from entering into transactions with any person or totally
ceasing to deal with him in a manner that results in impairing that
person's freedom to access or exit the market;
Limiting the distribution of a specific product, to, for example, certain
geographic areas or to a type of customer base;
Discriminating between sellers or buyers having similar commercial
positions in relation to sale or purchase prices or the terms of the
transaction;
Refusing to produce or provide a product that is circumstantially scarce
when its production or provision is economically possible;
Selling products at prices lower than their marginal cost or average
variable cost;
Obliging a supplier in not dealing with a competitor; and
Imposing the acceptance of obligations or the purchase of products that
are unrelated in their nature to the original transactions or agreements or
as opposed to relevant commercial custom.

Control over Mergers and Acquisitions

Under the Egyptian Companies Law, in a merger between Egyptian
companies, prior approval is required from the Ministry of Investment. The
approval is automatic and is not considered to be an impediment to the
merger.

Notification to the Egyptian Competition Authority is required where either:

An entity with a turnover exceeding LE 100,000,000 acquires assets or
merges into another entity; or
The sum of the respective annual turnover of the parties concerned with
an acquisition (the sum of the annual turnover of the acquirer, the
acquired party and all related parties in Egypt) exceeds LE 100,000,000.

The law defines related parties as two or more separate legal entities, where
the majority or the total of a related party's shares are owned by the other or
an entity subject to the actual control of another entity.

The law does not specify its application to foreign-to-foreign mergers, but it is
likely that the notification requirement only applies where the:

Transaction will have an impact on the Egyptian market.
The parties operate directly or indirectly in the Egyptian market.
One or more related parties of the acquirer or the acquired party are
Egyptian entities.

If the parties have no legal establishments (that is, subsidiaries or branches) in
Egypt, and only sell through a distributor, no notification is required, even if
the distributor's turnover is over LE 100,000,000 in the previous year. No
other foreign exemptions exist.

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XV. Intellectual Property

Intellectual property rights and rules of protection are set out in The
Intellectual Property Rights Law No. 82 of 2002 (IPR Law). The
following is a summary of the main intellectual property rights capable of
protection.

Patents

Nature of right. To be patentable, an invention must:

Be original and novel;
Involve an inventive step;
Be capable of industrial application; and
Not be specifically excluded by the IPR Law.

How protected. Applications for registration must be made to the
Egyptian Patent Office. The IPR Law sets out the rules for protection.

How enforced. Criminal sanctions are imposed. Both the patent owner
and the competent governmental body can bring a case in the courts
seeking protection. In addition, the patent owner is entitled to civil
remedies, such as damages or injunctions.

Length of protection. Subject to certain exceptions, protection lasts for
a maximum of 20 years, provided that renewal fees are paid annually
from the fifth year after filing.

Trade marks

Nature of right. Trade mark protection is available for trade, industrial
and service marks. To be registered as a trade mark, a sign must:

Be capable of graphical representation; and
Distinguish the goods or services of one undertaking from
another.

How protected. Applications for registration must be made to the
Egyptian Authority for Commercial Registration (EACR). The IPR Law
sets out the rules on protection. Unregistered marks can also be
protected through unfair competition actions.

How enforced. The methods of enforcement and the remedies available
are the same as for patents (see above, Patents).

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Length of protection. Protection lasts indefinitely, subject to renewal
every ten years.

Registered designs

Nature of right. To qualify for registration, a design must:

Be original and novel;
Have an individual character; and
Relate to the appearance of all or part of a product resulting from
certain features of that product or its ornamentation.

How protected. Applications for registration must be made to the
EACR. The IPR Law sets out the rules for protection.

How enforced. The methods of enforcement and the remedies available
are the same as for patents (see above, Patents).

Length of protection. Protection lasts for a maximum of 15 years,
subject to the payment of renewal fees after the first ten years.

Unregistered designs

Nature of right. To be protected, the design must relate to an aspect of
shape or configuration of the whole or part of an article, and must not be
commonplace.

How protected. There is no formal procedure for protecting
unregistered designs.

How enforced. The design owner must file an unfair competition claim.
In addition, civil remedies such as damages and injunctions are
available for the design owner.

Length of protection. Protection lasts for an indefinite period.

Copyright

Nature of right. Copyright subsists in original works, such as:

Literature (including software and databases);
Drama;
Music;
Art;
Sound recordings; and
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Cinematographic films.

How protected. Protection subsists automatically from the moment the
work is created. The rules on protection are set out in the IPR Law.

How enforced. The methods of enforcement and the remedies available
are the same as for patents (see above, Patents).

Length of protection. Protection lasts for:

Literary, dramatic, musical and artistic works: 50 years after the
death of the author;
Cinematographic films: 50 years after the death of the last
surviving author of the film.
In relation to neighboring rights, protection lasts for:
Producers of sound recordings: 50 years from the year of
publication or recording;
Broadcasting organizations: 50 years from the first broadcast;
Performers: 50 years from the first performance or recording.

Confidential information

Nature of right. This is protected under the IPR Law. To be protected,
the information must be:

confidential in nature and not in the public domain or common
knowledge; and
communicated in circumstances importing an obligation of
confidence.

How protected. There is no formal procedure for protection.

How enforced. The injured party must bring a court action for breach
of confidence based on breach of confidentiality. Criminal sanctions
are imposed. The copyright owner is entitled to civil remedies, such as
damages or injunctions.

Length of protection. There is no fixed term, but the information must
remain confidential for it to be protected.

I ntegrated circuits and their topography

Nature of right. To be protected, an integrated circuit must be:

Original and novel; and
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Non-obvious.

How protected. Applications for registration must be made to the
Egyptian Patent Office.

How enforced. The methods of enforcement and the remedies available
are the same as for patents (see above, Patents).

Length of protection. Protection lasts ten years from the date of filing
in Egypt or the first exploitation in Egypt or abroad, whichever is
earlier. A maximum term of 15 years from the design date is imposed.


XVI. Customs

Customs are regulated under Egyptian law No. 66 for the Year 1963. Imports
are subject to custom tariffs at variable rates depending on the product. No
custom tariffs are collected for exports. The competent authority in
implementing the law and regulating the customs field is the Egyptian
Customs Authority as a part of the Ministry of Finance. The Ministry of
Finance issues decrees dealing with custom tariffs for each imported product.

XVII. Dispute Resolution

Overview of Court System

The Egyptian Court system is composed of a number of tiers: Courts of First
Instance, Court of Appeal, and the Court of Cassation. Large commercial
disputes in civil and commercial matters are heard before the First Instance
Full Court, and appeals from there are heard before the Court of Appeal. The
branches of the First Instance Full Court and Court of Appeal used are those
with local jurisdiction depending on where the defendant is domiciled (for
example, Cairo, Giza and Alexandria). Further appeals can be made before
the Court of Cassation. In 2008, special economic courts were set up to
expedite litigation in commercial disputes (Law No. 120 of 2008). These
courts became active towards the end of 2008 and early indications are quite
positive.

Commercial disputes arising from administrative contracts (that is, contracts
concluded with governmental authorities relating to public works) are heard
in the first instance before the Administrative Court (equivalent to the Court
of Appeal in the civil and commercial jurisdictions) and appeals from there
are heard before the High Administrative Court (equivalent to the Court of
Cassation). Conflicts in jurisdiction and contradictory judgments (between
the civil and commercial court system and the administrative court system)
are resolved before the Constitutional Court.

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Some investment disputes are subject to optional amicable settlement. Such is
the case, for example, with the ministerial committee that has been formed in
order to amicably settle investment disputes arising from contracts concluded
between private investors and any State or governmental entity. Also, investor
complaints regarding obstacles imposed by the State or governmental
authorities hindering their investments can be submitted before a ministerial
committee that has the power to issue binding decrees removing such
obstructions and therefore settling potential disputes. Further, the Investors
Dispute Resolution Center has been established under the auspices of GAFI to
amicably settle corporate and investment related disputes arising between
company shareholders, partners or companies. It should be stressed; however,
that recourse to such committees is optional and is by no means a prerequisite
for litigation, arbitration or any other dispute resolution mechanism.

Enforcement of Local Judgments

Enforcement is made by obtaining a writ of execution from the Execution
Judge and the judgment is enforced through court bailiffs. Numerous
methods are available to delay execution, including a contestation case (which
temporarily stops execution for a few months) and third party recovery claims
in relation to secured assets. Delays can be up to one year or more in some
cases.

Enforcement of Foreign Judgments

Egyptian courts will generally recognize and enforce foreign judgments if the
following conditions are satisfied: (a) Egyptian courts do not have jurisdiction
over the dispute, and the foreign court which rendered the judgment has
jurisdiction pursuant to its rules on international jurisdiction; (b) the parties
have been notified of the proceedings and validly represented before the
competent court; (c) the judgment or award is final and binding pursuant to
the rules prevailing under the law of the foreign court; and (d) the foreign
judgment is not in conflict with a prior award or judgment rendered by
Egyptian courts and is not in contravention of the prevailing public policy
considerations.

Arbitration

Since the introduction of the Arbitration Law (Law No. 27 of 1994),
arbitration has become an important and effective means of dispute resolution
in Egypt. The trend has been an increasing resort to arbitration in commercial
disputes. Arbitration is, in many cases, preferred to court litigation,
particularly when the parties are seeking a relatively speedy resolution, and
can afford the much higher arbitration costs.

The most prominent arbitration organization in Egypt is the Cairo Regional
Center for International Commercial Arbitration (CRCICA). The CRCICA
basically applies the United Nations Commission on International Trade Law
(UNCITRAL) Arbitration Rules.

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An agreement to arbitrate must be in writing. No separate agreement is
required. Judges have generally accepted and supported arbitral proceedings
and an arbitral award. The Arbitration Law makes it clear that courts shall not
accept a case if there is an agreement to arbitrate (unless the defendant waives
its right to arbitration). The court rules these cases inadmissible.

Enforcement of Arbitral Awards

Arbitration awards are final, binding and subject to no appeal on the merits.
However, awards can be challenged in actions of nullity, and can be declared
null and void. Grounds for nullity are set out in the Arbitration Law, and
include lack of jurisdiction, breach of public policy, failure to grant a party a
right of defense, and excluding the application of the agreed law governing
the merits of the claim.

Enforcement is made through depositing the award with the courts and
obtaining a writ of execution. An arbitration award is then enforceable in the
same way as a court judgment, through court bailiffs. There are procedures
that need to be undertaken, and a 90-day period to grant the other party the
right to bring a nullity action. A nullity action does not stop enforcement.
There are procedural defenses to delay enforcement for some time, perhaps
even a year or longer, but ultimately an award that is not annulled will be
enforced in due course.

At the end of 2008, the Ministry of Justice imposed some new regulations
governing the deposit of awards for enforcement. These regulations
potentially cast serious doubt over enforceability. The author of this article
believes that these regulations are contrary to the Arbitration Law and
therefore unconstitutional. It is hoped these regulations will be withdrawn
before long.

Enforcement of Foreign Arbitral Awards

Under the New York Convention on the Recognition and Enforcement of
Foreign Arbitral Awards (1958) to which Egypt is a signatory, a foreign
arbitration award is enforceable in a similar way to an award issued in Egypt,
by deposit and obtaining a writ of execution. At the stage of recognition or
enforcement, arbitral awards, like foreign judgments, are not reviewed on
their merits.

Mediation

Apart from arbitration, there is no formal statutory recognition of other
alternative dispute resolution mechanisms (for example, mediation). The
CRCICA has rules for mediation and conciliation, but these processes are
only subject to contractual enforcement. Recently, interest has grown in
mediation and the Egyptian ADR Association was established in 2007.
However, mediation remains subject to contractual agreement, and is not
formally governed by legislation.

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XVIII. Limitation of Scope

The information provided herein is general and for informational purposes.
The information is provided as of March, 2012, and is subject to change and
updates as a result of new legislation, laws, statutes, regulations, rules,
decrees, ordinances, and other applicable governmental laws. The
information does not purpose to be exhaustive and should not be relied upon
as a substitute for legal advice on any specific matter.



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Main contacts:

Khaled El Shalakany
(Managing Partner)
kshalakany@shalakany.com
Tel (202) 272 88 888

Saleh Hafez (Senior
Partner)
saleh@shalakany.com
Tel (202) 273 99 205

Emad El Shalakany
(Senior Partner)
ess@shalakany.com
Tel (202) 273 99 216


Firm Overview:

With a century of experience since its establishment in 1912, the Firm has achieved a
record of success and growth that today makes it the longest established firm and one
of the leading firms in Egypt and the Middle East. With over 82 attorneys, counselors
and paralegals, including 18 partners, 12 paralegals and a support staff of over 80
qualified professionals, the Firm provides first-rate quality legal services to a broad
base of multinational, regional and premium local clients through its offices in Cairo,
Alexandria and Dubai. The Firm is consistently ranked as top tier firm across almost
all practice areas by the internationally recognized legal ranking organizations. The
Firm is proud to have recently won the IFLR Middle East Egypt Law Firm of the Year
2011 award as well as the Lawyer Monthly Magazine Best Litigation and Arbitration
Team in Egypt 2011 award. Shalakany Law Office is the exclusive Egyptian member
for Lex Mundi.
The Firm strives to provide personalized and efficient quality services across a broad
spectrum of fields of practice including Anti-dumping and Trade Disputes, Anti-trust
and Competition, Arbitration, Aviation, Banking and Financial Institutions, Capital
Markets, Corporate, Commercial, Agency and Distribution, Intellectual Property,
Insurance, Labour and Employment, Litigation, Manufacturing, Mergers and
Acquisitions, Oil and Gas, Privatization, Projects and Construction, Real Estate, Tax,
Telecommunications and Information Technology and Tourism, Hotels, Travel and
Services.
The Firm has been involved for decades in some of the most significant transactions
taking place in the region including many of the major mergers and acquisitions
executed in Egypt, on behalf of buyers, sellers and in certain cases, as transaction
counsel. The Firms Tourism Group participated in drafting and/or reviewing,
amending and negotiating numerous hotel management and related agreements in
Egypt, whether acting on behalf of owners, or management companies.
The Firm on average has around 800 on-going cases before all levels of the Egyptian
Courts and handles around 10 new arbitration cases each year. The Firm prides itself
on having a very high success rate in both its litigation and arbitration work. Recently,
the Firm obtained favourable judgments in several high profile commercial
arbitrations, including cases for Millennium Hotels, Key Trade AG, Unilever, Galaxy
Energy Group, and Tecnicas Reunidas. In litigation, the Firm also obtained favourable
judgments in a number of important litigation cases, including cases for MAS
International Company, Sonat, Galaxy, Mena House Oberoi Hotel, Tourah Portland
Cement, The Egyptian Company for Mobile Services (Mobinil), and Misr Glass
Manufacturing Company.